Section 15Sec./Art. 15

Functions and Responsibilities of Distribution Utilities. A DU may enter into a joint venture for the installation and operation of microgrid systems: Provided, That the DU shall maintain a separate account for such business undertaking pursuant to the ERCs applicable rules and guidelines on business separation and unbundling: Provided, further, That only a joint venture for the installation and operation of microgrid systems where the DU owns at least fifty-one (51%) of capital shall be considered as a DU operated microgrid systems or a DUs MGSP.

DUs shall be allowed to impose a separate rate in DU identified unserved areas served by a DU operated microgrid system or DOE declared unserved and underserved areas served by a DUs MGSP: Provided, That any cross-subsidy between the end-users of the DU operated microgrid system or the DUs MGSP and the other end-users of the DU shall be prohibited.

The DU pursuant to the directive to pursue the total electrification of their franchise areas shall prepare and submit its LTER which shall contain the following, among others:

(a) A validated detailed inventory of all areas within a DUs franchise which it plans to electrify including a specific time frame for electrification, including DU identified unserved areas for electrification through DU operated microgrid systems;

(b) A validated annual work plan for electrification; and

(c) A validated detailed inventory of all unserved and underserved areas within its franchise.

The DU shall integrate the LTER in its DDP.